Your position in a real estate investment enables you to benefit from the cash flow the property produces each month. Cash flow is what is left over when you take the property’s income (most often rent) minus its expenses. This left over portion is divided among the investors based on their initial  investment, These distributions are referred to as “passive income” or "mailbox money."

Appreciation refers to an increase in a property's value over time. The more an asset appreciates in value, the more profit is made when it comes times to refinance or sell. In addition to this natural appreciation, we often increase the value of our assets by increasing their net operating income. This equates to more money for our investors upon exit.

We are not professional tax accountants and we recommend you seek proper counsel, but owning real estate has always provided incredible tax savings and tax advantages when compared to traditional investments such as stocks.  Commercial real estate investors often end up paying fewer taxes, or even no taxes, because of tax code incentives such as bonus depreciation. 

As tenants pay down the property’s financing, your equity naturally increases — building long-term wealth and financial leverage for future investments.